HOW DOES CREDIT TO SMALL SCALE ENTERPRISES AND THEIR OUTPUT AFFECTUNEMPLOYMENT IN NIGERIA?

Authors

  • S. N. Marcus Department of Economics Abia State University, Uturu
  • C. K. Aghaulor Department of Economics College of Education Agbor
  • P.C. Njoku Department of Economics Abia State University, Uturu

Keywords:

small businesses, unemployment, Output, Credit, Nigeria

Abstract

Small scale enterprises are said to be the greatest provider of employment when aggregated while access to finance is viewed as an impediment to their growth. The study focused on the effect of bank credit to small scale businesses and their output on unemployment in Nigeria. The study covered the period of 1986 to 2018. The objective of the study is to investigate the influence of bank credit to small scale enterprises and their output on unemployment. It employed the Vector Error correction method of analysis.
Findings reveal that both credit to small scale businesses and their output are not significant in explaining systemic changes in unemployment but reduced unemployment in the second period. The study recommends an increased credit to small scale businesses
in Nigeria to enhance their output which will in turn reduce unemployment. 

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Published

2021-12-14